Stocks with high volume get all the attention. Volume means participation. It means action. It is no wonder that traders like high-volume stocks and neglect the low-volume ones. But this approach misses the potential of low-volume stocks to find explosive moves. By low-volume stocks, I am not referring to thinly traded penny stocks. A prudent trader […]
Volume-Weighted Moving Average (VWMA) – A Simple Volume Tool
Using volume in your trading is a difficult skill to master. Hence, traders might find volume trading indicators useful. But unfortunately, some volume trading indicators have many inputs and are hard to understand. This is why the Volume-Weighted Moving Average (VWMA) is a great choice for new traders. What is a Volume-Weighted Moving Average (VWMA)? Compared to indicators like On-Balance Volume […]
Ease of Movement Trading Strategy
Combining price and volume helps us to decipher demand and supply. But what’s the point of understanding demand and supply? We want to find the path of least resistance. For this purpose, Richard Arms’ Ease of Movement indicator fits the bill. While you can check out Ease of Movement’s formula here, you don’t need to […]
Reliable Support and Resistance Zones with High Volume Signals
Price never moves in a straight line. Price action bounces up and down between support and resistance levels. In fact, when skilled price action traders analyse a chart, they are just looking for support and resistance zones. We look at major support and resistance for market bias. We also make use of minor support and resistance […]
Your First Guide to Volume Spread Analysis (VSA)
You have heard of Volume Spread Analysis and the value it might add to your analysis. But it sounds like a convoluted trading method with uncommon terms like “No Demand Bar” and “Stopping Volume”. Is VSA really that inaccessible? Together, let’s take the first step to understanding VSA. With this guide, you will find that […]
Low Volume Pullback Strategy (Expanded)
Technically, a healthy trend should advance with increasing market interest. When a trend retraces temporarily, the market interest falters. The question is how do we gauge market interest? The best information we have to assess market interest is volume. High volume indicates strong market interest; low volume shows weak participation. This idea forms the basis […]
